SAP and TechniData Provide First Integrated REACH Solution

This functionality complements SAP’s existing software for governance, risk and compliance (GRC) and the expertise of SAP’s GRC business unit, aimed at helping organizations protect their brand and reputation while driving higher growth and stakeholder trust. The announcement was made at the CeBIT trade fair, being held in Hanover, Germany, March 15 – 21.
Approved by the European Parliament and European Council just 60 days ago, REACH legislation requires companies producing or importing chemicals in quantities of more than one ton per year in Europe to report and document specific data about the handling of such substances, potentially resulting in dramatically increased operational costs to remain compliant. By June of this year, more than 6,000 chemical companies are required to begin compliance with the new regulations covering more than 30,000 chemical substances, with additional impact to other industries such as pharmaceuticals, consumer goods and oil and gas that make substantial use of chemicals in their manufacturing processes.
SAP and TechniData are collaborating to deliver a REACH solution as an extension to the existing SAP Environment, Health & Safety (SAP EH&S) application to integrate all phases of the REACH process, including registration, evaluation and authorization of chemical substances. SAP EH&S is currently used by more than 1,000 companies worldwide, including BASF and Rohm and Haas. Companies already licensing SAP EH&S are well prepared now to easily track substance volumes, collect and submit data and track the chemical registration process. The automation of these processes and the alignment with standard chemicals industry processes such as procurement and logistics, helps companies streamline operations, resulting in cost savings and increased legal certainty.
“Easily identifying, tracking and reporting REACH-relevant data is essential in becoming compliant with this legislation,” said Dr. Andreas Gypser, responsible for EH&S systems at BASF. “SAP and TechniData working together on this solution provides us the ability to track substance volume in a way that is seamlessly integrated into ERP, thus saving our company significant time and money.”
“REACH will have a deep impact on the supply chain processes,” said Jürgen Schwab, CEO of TechniData. “The tight integration of compliance support directly in SAP business solutions and technology is a perfect example of making our customers more successful. With ever-increasing environmental legislation, integrated solutions are the key to success,” he added.
Initially addressing the pre-registration phase of the legislation, in which companies determine which chemicals need to be tracked, the new functionality for REACH enables substance volume tracking capability based on the SAP EH&S application. In parallel, the functionality provides project management capabilities to define registration projects and activities. Moreover, it supports the management, collaborative usage and access of documents related to the registration process, allowing internal and external groups to work together while enabling a transparent, streamlined and reliable business process.
The automation of processes related to meeting these requirements will enable customers to quickly become REACH-compliant while avoiding dramatically increased operational costs that are normally associated with compliance regulations. Research regarding REACH compliance indicates that companies can expect significant increases in operating costs as they work to become compliant with this legislation.
“Together with TechniData, our integrated functionality will help companies reduce the compliance costs and implementation time associated with REACH,” said Franz Hero, vice president, Chemicals, SAP AG. “SAP has always been and will always be dedicated to providing IT solutions that address industry-specific needs. Our strong partnership with TechniData has resulted in this timely offering to help chemicals companies remain competitive as they strive to manage governance, risk and compliance in addition to their mission to produce chemicals.” Available immediately and globally as enhanced functionality in the SAP EH&S application, REACH capabilities will be enhanced in accordance with the progressive deadlines of the REACH legislation.

Source: SAP AG